Saudi Arabia: Global Chip Shortage Encourages Local Industry to Boost up Production

Saudi Arabia: Global Chip Shortage Encourages Local Industry to Boost up Production

The shortage has pushed chip stocks to record highs, and analysts expect that chips will continue to be in short supply at least through the end of 2021 A global semiconductor chip shortage as a result of the coronavirus disease (COVID-19) pandemic has increased the need for the Kingdom to boost its local production so it is less dependent on foreign manufacturers, a Kingdom-based IT expert said. The shortage has pushed chip stocks to record highs, and analysts expect that chips will continue to be in short supply at least through the end of 2021. Maribel Lopez, principal analyst at San Francisco-based Lopez Research, told MarketWatch the chip industry is facing "a perfect storm" of demand and supply issues that is unlikely to resolve soon. "Unless we have a major economic meltdown, which is obviously possible, one of the things that's happening right now is that almost anything you buy is going to have a chip in it," Lopez said. Reuters reported that chip prices could increase by up to 6 percent this year, but the delay has also seen production cut short. Carmaker Ford said it could see production cut by 20 percent as a result of the shortage